The Meridian Energy Ltd (ASX: MEZ) share price is in focus after the company delivered a strong operating update for September 2026, with record first quarter generation and robust storage levels.
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What did Meridian Energy report?
- Q1 2027 hydro inflows 154% of historical average, up 29% on Q1 last year
- Q1 generation up 18.9% year-on-year, setting a new quarterly record
- Average generation price 64.3% lower compared to Q1 last year
- Total operating costs rose 1.1% while capital expenditure nearly doubled, up 93.9%
- Total retail sales volumes in Q1 fell 3.0% year-on-year
- Customer numbers at quarter end were 0.9% lower than a year ago
What else do investors need to know?
September 2026 featured mild weather, with inflows into Meridian's lakes at 150% of historical average. Hydro storage stayed well above long-term norms—Waitaki water storage finished the quarter at 183% of the historical average, and Waiau at 133%.
Retail sales volumes slipped year-on-year, particularly in agriculture (down 21.4%) and corporate (down 10.6%), but small and medium business volumes rose 11.7% and large business was up 9.2%. More than half of Meridian's customer base has now been moved onto the Kraken digital platform, supporting operational efficiency.
Guidance for FY27 total capital expenditure remains unchanged at $370 million to $410 million. Of this, "stay in business" spend is forecast at $110–$120 million, growth capital expenditure at $220–$250 million, and repowering outlays at $40 million.
What did Meridian Energy management say?
Chief Executive Mike Roan said:
Despite mild weather during September, we continue to have inflows and lake storage that are well above historical averages. These factors enabled us to maintain high levels of hydro generation, lifting our overall generation for the first quarter of a financial year to a record level. It was also pleasing to see a return to growth in customer numbers, while we have now migrated more than half of all our customers onto the Kraken platform.
What's next for Meridian Energy?
Meridian is maintaining its investment plans, with a clear focus on asset renewal, network growth, and repowering projects. Strong hydro conditions underpin its generation outlook, while the integration of more customers onto the Kraken platform is expected to drive further operational benefits.
The company is also closely monitoring market conditions, including forward electricity pricing and changing demand patterns—especially as weather trends and the New Zealand Aluminium Smelter's load both remain key factors for the sector.
Meridian Energy share price snapshot
Over the past 12 months Meridian Energy shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.
